ISAI — Acquisition Tax
The Impuesto Sobre Adquisición de Inmuebles is a state tax on property transfers, typically 2–5% of purchase price. Rates vary by state: Quintana Roo (Tulum, Cancún, Bacalar) is typically 3–3.5%; Yucatán (Mérida, Sisal) is typically 2–2.5%. Paid at closing.
Notary Fees
The Notario Público charges 0.5–1.5% of the transaction value, depending on property value and complexity. On a $200k USD property, expect $1,500–$3,000 USD in Notary fees. The buyer pays these in Mexico (opposite to US convention).
Fideicomiso Setup Fee
If in the restricted zone: $800–$1,500 USD one-time setup fee paid to the bank holding the trust. Banks include Scotiabank, Banamex (Citibanamex), HSBC, Banorte. Annual maintenance fee runs $500–$700 USD/year.
Attorney Fees
Strongly recommended: hire your own attorney (independent of the developer or Notary) to review contracts and due diligence. Typical cost: $500–$2,000 USD depending on complexity.
Predial — Annual Property Tax
Mexico's property tax (predial) is remarkably low by international standards — typically $100–$500 USD/year for most residential properties. Rates are assessed on cadastral value, which lags market value significantly.
Sample Closing Cost Calculation
For a $200,000 USD property in Tulum: ISAI ~$6,000 + Notary ~$2,500 + Fideicomiso setup ~$1,200 + Attorney ~$1,000 = approximately $10,700 USD (5.35%). Always budget 6–8% to be safe.